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Telecoms: Starlink complies with NCC’s regulation, suspends ‘unilateral’ Internet tariff hikes

*Starlink, a satellite Internet provider, suspends its recent  service tariff increments, following expressed concerns by the Nigerian Communications Commission, industry stakeholders cum players, and telecoms consumers

Gbenga Kayode | ÂÌñÏׯÞ

In consonance with the telecoms sector regulator’s recent “pre-enforcement action” against the Internet service provider, Starlink has announced the suspension of  its recent service fee increments.

ÂÌñÏ×ÆÞ reports the Telco’s decision to “temporarily” suspend the service tariff hikes was sequel to concerns from both telecoms consumers and the Nigerian Communications Commission (NCC).

Starlink reportedly stated: “Last month, we increased the monthly service price for Starlink in Nigeria to account for inflation, helping us maintain operations and continue delivering reliable service.

“Today, we are temporarily suspending this price increase as we navigate regulatory challenges.”

The company also explained that the suspension of the new tariff increase regime has not only addressed the NCC’s concerns but also reaffirmed Starlink’s commitment to making high-speed Internet affordable for Nigerian telecoms consumers.

It is noted that Starlink’s move is peradventure offering the much-needed relief to telecoms consumers seeking affordable Internet, and other connectivity products and services in the country’s digital ecosystem.

Still, other telecoms industry stakeholders and watchers have observed that Starlink’s move was a resolution to the regulatory challenges the company had encountered in its pricing strategy, according to report.

Earlier, the Internet service company, owned by Elon Musk, American billionaire businessman had jacked up prices of its satellite Internet service bouquets

Starlink, September 2024, had claimed that it implemented price hikes to offset inflation costs, raising the monthly service fee from N38,000 to N75,000 and increasing the cost of its hardware kits for new customers from N440,000 to N590,000 respectively.

Despite that Starlink had submitted a request for a price adjustment to the NCC, it was gathered, however, that the company unilaterally announced the fresh service tariffs before receiving a decision from the telecoms sector regulatory Commission.

Subsequently, the NCC reacted strongly to Starlink’s price increase.

The NCC, in a statement, said that the  company violated Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003 and breached its operating licence conditions by unilaterally adjusting rates without regulatory approval.

The industry regulator equally cautioned that Starlink’s premature pricing actions posed a potential disruption to regulatory stability in Nigeria’s telecom sector.

Meanwhile, Starlink’s decision to suspend its unilateral tariff increments is expected to accelerate Internet penetration across the West African country.

The company’s move is also anticipated to offer individual consumers, businesses, and communities improved access to reliable digital services in the telecoms ecosystem in Nigeria.

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